Received this email from a friend? Sign up here.

Tuesday, May 28, 2024

Charles Barkley says he will talk to the press if he wishes, Ben Sherwood and Joanna Coles move to reduce headcount at the Daily Beast, Media Matters tallies the relentless attacks Fox News personalities have lobbed at Judge Merchan, Ted Sarandos discusses how A.I. will impact Hollywood, Threads boss Adam Mosseri ignites more backlash, OpenAI begins training its next model, Taylor Swift prevails over Billie Eilish, and the box office blues spark worry. But first, the A1.

THE A1

Vivek's Buzzkill

CNN Photo Illustration/Jose Luis Magana/AP

Vivek Ramaswamy is waging an expensive trolling campaign on BuzzFeed.

The right-wing radical — who has an extensive history promoting lies and conspiracy theories, including around the January 6 insurrection, the Sept. 11 attacks, and legitimacy of the 2020 vote — outlined his plan on Tuesday to revive the once high-flying progressive media company, which he disclosed earlier this month he had taken an activist stake in.

In a letter to BuzzFeed's board, a copy of which Ramaswamy posted online, the MAGA hardliner and former Republican presidential candidate recommended laying off large swaths of the company's existing staff. He encouraged BuzzFeed's board to transform the outlet into a creator-driven platform, suggesting it hire personalities akin to fellow radicals Candace Owens and Tucker Carlson. He requested that the board add three unnamed directors to its ranks to increase "diversity of thought." And, finally, Ramaswamy implored BuzzFeed to issue a public apology to the country for having supposedly lied about Donald Trump, Covid-19, and various other issues.

"Address your audience directly and candidly admit: We failed in our obligation to tell you the truth," Ramaswamy encouraged BuzzFeed. "By both omission and commission, we repeatedly lied on issues of national importance, and so did the rest of the media."

Needless to say, Ramaswamy's proposal is not a serious one. He obviously knows that BuzzFeed is not going be issuing any apologies for supposedly lying to the public. And it goes without saying that BuzzFeed co-founder and boss Jonah Peretti is not going to adopt a business plan that would deform his company and remold it into a Rumble-like platform that would disseminate MAGA disinformation for profit.

"What few business ideas he presents in his letter are distinctly un-original and reflects media truisms and conventional platitudes, none of which could possibly be new to BuzzFeed or any experienced media leaders," Jeffrey A Sonnenfeld, the renowned professor and senior associate dean for leadership studies at the Yale School of Management, told me Tuesday. "He praises his three nominees for the board and pressures BuzzFeed into accepting them without publicly identifying who they are and whether they are qualified beyond their loyalty to Vivek. He is, in short, trying to hijack BuzzFeed and turn it into a pliable Vivek Ramaswamy in-house news organ — VivekNews so to speak."

While BuzzFeed was once the upstart darling of the digital media era, soaring with massive audience scale on the back of social media referrals and quirky quizzes, changes to Facebook and other platforms' algorithms took the wind out of the outlet's sails. Since BuzzFeed went public in 2021 via a SPAC, shares in the company have plunged 92%, trading at $3 on Tuesday. Though the company has fallen on hard times, most notably shuttering its award-winning news division and selling off Complex, it continues to operate The Huffington Post, Tasty, First We Feast, and other major internet brands.

Peretti, in his emailed response to Ramaswamy, was more cordial than Sonnenfeld. But it was apparent that he does not view the right-wing entrepreneur's ideas for the future of BuzzFeed as compelling.

"Based on your letter, you have some fundamental misunderstandings about the drivers of our business, the values of our audience, and the mission of the company," Peretti wrote. "I'm very skeptical it makes business sense to turn BuzzFeed into a creator platform for inflammatory political pundits. And we're definitely not going to issue an apology for our Pulitzer Prize-winning journalism."

Peretti said he does "welcome outside perspectives from shareholders" and would meet with Ramaswamy. Though in doing so, Peretti made it clear Ramaswamy does not call the shots at the company and would have to consult with Peretti's executive assistant to "schedule a time to meet."

Indeed, while Ramaswamy disclosed that he has taken an 8.3% stake in BuzzFeed's class A shares, a position he said he continues to increase, he has little actual power over the direction of the company. That is because Peretti owns 96% of class B shares, which each come with 50 votes compared to the single vote a class A share offers. As it currently stands, Peretti has 64% voting power compared to Ramaswamy's paltry 2.6%. In other words, Peretti remains — by far — the actual boss at BuzzFeed. Ramaswamy's antics might generate noise, but that's all it ultimately is.

So what does Ramaswamy really want from this affair? Occam's razor would suggest the noise and attention it brings, which has been the apparent motivating factor behind the various moves he has made in recent years, including running for president.

As Sonnenfeld derived from his letter, Ramaswamy's proposal "oozes with self-promotion and seemingly reflects an ideological crusade much more than a serious business turnaround plan."

Asked how Peretti and the BuzzFeed board should address Ramaswamy's activist stake, Sonnenfeld was not subtle: "Ramaswamy has little credibility amongst the investors who comprise BuzzFeed's shareholder base, less credibility with their subscribers, and BuzzFeed's board should not allow him to hijack the company with such a minor stake and turn BuzzFeed into the Vivek Ramaswamy in-house news organ."

——— BELOW THE FOLD ———

CNN Photo Illustration/Mike Kirschbaum/NBAE/Getty Images

The Bark of Barkley: As the future of "Inside the NBA" remains uncertain at TNT, Charles Barkley is doing anything but staying silent over concerns that Warner Bros. Discovery is in jeopardy of losing the rights to broadcast NBA games. The former NBA star has in recent days voiced his strong displeasure with senior company management, telling The NYT's Tania Ganguli that he is sounding the alarm on the potentially devastating impact the loss of the league's games could have on dozens of people at the WBD-owned network. "It's people's lives," he said, when asked about the matter. Barkley speaking out is in defiance of TNT's public relations apparatus, Ganguli reported. Per Ganguli, TNT asked the cast of "Inside the NBA" not to speak to the press. "We aren't allowed to talk ever since Chuck's outburst," Shaquille O'Neal told Ganguli when approached for an interview. Barkley, however, has declined to stay silent. "I can talk to who I want to," Barkley said to Kenny Smith, using an expletive, as he ushered Ganguli into an elevator. Read Ganguli's full story.

THE INDUSTRY

THE FOURTH ESTATE

✂️ Cuts, cuts, cuts: Under new bosses Ben Sherwood and Joanna Coles, the Daily Beast "will do a round of voluntary buyouts intended to cut costs by $1.5 million, in one of their first major moves to try to revitalize the flagging digital tabloid," Benjamin Mullin and Katie Robertson report. (NYT)
A NewsGuild spokesperson confirmed to Natalie Korach that Daily Beast management "indicated they want to reduce the newsroom workforce." The guild said it is "in the process of negotiations with management." (The Wrap)
Former WaPo senior managing editor Cameron Barr told Ben Smith and Maxwell Tani that he "should have pushed harder" for the Justice Samuel Alito flag story, following the revelation that the newspaper passed on the scoop in January 2021. Marty Baron additionally told Semafor he was not aware of the story at the time. (Semafor)
"It's unclear why the Washington Post didn't consider putting the Alito flag detail in one of its many stories about calls for Justice Clarence Thomas to recuse himself from Jan. 6 cases because his wife, Ginni Thomas, was involved in secret efforts to prevent Joe Biden from taking office as president," Mark Jacob notes. (Stop the Presses)
The fact that The WaPo passed on the Alito story is now being used by right-wing outlets in their attempt to discredit the story. "The Alito flag smear is so absurd, even the Washington Post passed on it," the New York Post editorial board wrote Tuesday. (New York Post)
Pat McAfee presents a "threat to sports journalism," Devin Gordon writes. (The Atlantic)
The Associated Press signed five deals with local newsrooms to circulate content ahead of the 2024 election, Sara Fischer reports. (Axios)
News Corporation Australia is set to reveal a restructuring "with middle management in the line of fire," Amanda Meade and Jonathan Barrett report. (Guardian)
FT boss John Ridding, one of the news publishers licensing content to OpenAI, said he believes media outlets "have leverage and should insist on payment" from technology companies. (Press Gazette)
"As tech companies race to perfect machines that can already produce humanlike text, summarize long documents and describe images and videos, media companies are struggling to figure out where they fit into the new gold rush," Laura Wagner and Gerrit De Vynck write. (WaPo)
BBC host Martine Croxall is back on-screen after more than a year off-air amid an ongoing a legal battle with the broadcaster. (Deadline)
Speaking of the British broadcaster: Jim Waterson explores how the BBC's mighty push alert system has slowly overtaken the rest of its levers in terms of reach. (The Guardian)

THE BIZ

The bundling continues! Verizon is offering its customers YouTube Premium at a 30% discount, while also announcing Peacock is joining its +play content hub, Todd Spangler reports. (Variety)
"Don't be surprised if the savings promised by these new bundles ultimately prove negligible," Alan Sepinwall writes. (Rolling Stone)
Meanwhile, as advertisements now saturate the streaming services, John Koblin wonders, "What happened to our ad-free TV?" (NYT)
In a wide-ranging interview, Netflix boss Ted Sarandos spoke to Lulu Garcia-Navarro about how he sees A.I. impacting Hollywood: "I don't believe that an A.I. program is going to write a better screenplay than a great writer, or is going to replace a great performance, or that we won't be able to tell the difference. A.I. is not going to take your job. The person who uses A.I. well might take your job." (NYT)
In the same interview, Sarandos said Netflix doesn't do "breaking news and that kind of thing because I think there's a lot of other outlets for it." He added, "People aren't looking to us for that." You'll remember, we raised the issue of Netflix and news earlier this month.

MEDIA MOVES

Bon Appétit named Pervaiz Shallwani associate director of dining and food culture. (Threads)
The WaPo upped Reem Akkad to senior international editor. (WaPo)
Fortune hired Michael del Castillo as a senior reporter. (TBN)
The NYT hired River Davis as a business correspondent; hired Carrie Mifsud as an art director; hired Meredith Rizzo as a senior staff editor; and hired Nico Chilla as a graphics editor. (NYT/NYT)

THE INFO WARS

CNN Photo Illustration/Fox News

Fox's Merchan Focus: Closing arguments in the Donald Trump hush-money trial concluded Tuesday, meaning that the jury will begin deliberating on Wednesday. As Trump's fate hangs in the balance, the progressive watchdog Media Matters published a study revealing the extent to which Fox News has repeatedly assailed Judge Juan Merchan, who has been overseeing the case. According to the research, the right-wing outlet fired at least 200 attacks during the duration of the trial, the most of which came from MAGA propagandist Sean Hannity. The barrage of criticism portrayed Merchan as a conflicted and biased judge who has not offered the former president a fair trial. In other words, the outlet is amplifying Trump's baseless gripes against the judge to its audience. Read the full report here.

🔎 Zooming in: The reality-dwelling faction of the U.S. electorate will never see most of the ugly attacks being leveled against Merchan by Trump's media allies. But millions of Americans residing in the MAGA Media universe consume content vilifying the judge every day. And for them, it is the gospel truth. It's a dishonest and reprehensible political strategy, but a smart one. Priming the audience to believe Trump is being abused by the judicial system helps protect the GOP frontrunner, regardless of the verdict the jury renders. If Trump is found guilty, the verdict will hold little weight inside the GOP, due in large part to how the case has been covered in right-wing media outlets.

IN THE BATTLEFIELD

Brian Stelter writes about how Lisa Rubin "became MSNBC's 'eyes and ears' at the Trump trial," noting how the "corporate lawyer turned correspondent is having a moment on the cable news channel." (Vanity Fair)
Greg Sargent warns that Trump's "hateful attacks on the media" have taken a "dangerous turn," writing that one recent post he elevated attacking Joe Scarborough sends a broader message: "If elected, he'll use state power to come after countless other Americans." (TNR)
Former Tucker Carlson producer Alexander McCaskill, who was ousted from Fox News for declaring President Joe Biden a "wannabe dictator" in an on-screen chyron, has landed at NewsNation as a producer for Dan Abrams, Justin Baragona reports. The network ignored requests for comment, but suffice to say it's not a good look! (Daily Beast)
Gotta have that merch! The Daily Wire raked in over $22 million from commerce in 2023, Sara Fischer reports. (Axios)
Check to see if there is a blue moon outside because we found a way to relate to Laura Ingraham. The Fox News host missed her show Tuesday after falling victim to a United Airlines delay. (Mediaite)

THE VALLEY

CNN Photo Illustration/Jose Luis Magana/AP

Throttled on Threads: Instagram and Threads boss Adam Mosseri faced a torrent of backlash over the holiday weekend after again reiterating that the Meta-owned platform, home to a number of X refugees, will not amplify posts with "political content." Mosseri — who refuses to grant an interview with members of the press — made the comment in an apparent off-hand reply to Casey Newton. "Just to clarify, and this is on me for not being specific enough in my language historically, we're not trying to avoid being a place for any news," Mosseri wrote. "News about sports, music, fashion, culture is something we're actively pursuing. Political news is the topic where are looking to be more careful. Politics is already very much on threads, and that's okay, we're just not looking to amplify it." The statement, of course, generated fierce pushback from users, who noted the importance of discussing public affairs in the lead up to a high-stakes election. It also renewed a key question: What exactly does Meta define as "political news" — a question that Mosseri and Meta have yet to provide a clear answer for, despite our many inquiries.

► Molly Jong-Fast captured the bigger picture well: "Technology companies killed local news, elevated fake news, and now have decided to focus on lifestyle."

TOO MANY TABS

OpenAI said it "recently begun training its next frontier model" and it anticipates "the resulting systems to bring us to the next level of capabilities on our path to AGI." The Sam Altman-led company curiously disclosed the news in a blog post about how it had formed a new safety committee. (NYT)
Mark your calendars: A U.S. appeals court will hear TikTok's challenges to the U.S. divest-or-ban law in September. (Reuters)
Did Google's all-powerful — yet mysterious — algorithm just leak? The company won't comment on a purported leak of internal documents, Mia Sato reports. (The Verge)
YouTube continues to slowly wade into gaming, rolling out its Playables games to all users. (The Verge)
Meta added new safety features to its CrowdTangle misinformation tracking tool in an apparent bid to quell E.U. election-related concerns, though the company still plans on phasing out the product. (Reuters)

CURTAIN CALL

CNN Photo Illustration/Warner Bros. Pictures

Box Office Blues: By now, it's no secret that the U.S. box office just experienced the worst Memorial Day weekend on record since 1995, with "Furiosa: A Mad Max Saga" and "The Garfield Movie" simply failing to drive audiences into theaters. In fact, with "Furiosa" driving an estimated $32 million and "Garfield" earning $24 million, the fate of the entire summer box office is not looking too promising. As Box Office Theory's Shawn Robbins told my colleagues Eva Rothenberg and Alicia Wallace, "Barring some major overperformances, this summer looks like it'll be down 20% to 25% in box office grosses between May and August from last year." Those types of predictions are setting off alarm bells in Hollywood and prompting a good amount of ink to be spilled on what has gone wrong.

Here are a few recommended reads:

► A number of factors are to blame, as The Wrap's Jeremy Fuster outlines, including: Hollywood strikes, a lack of Marvel movies, no four-quadrant tentpoles, and increasingly selective audiences.

► Regarding "Furiosa," which premiered at the Cannes Film Festival to rave reviews, "part of the problem is that prequels seldom do as well as direct sequels," Variety's Rebecca Rubin notes.

► Business Insider's Peter Kafka writes that "the most obvious explanation is the one Hollywood and the people who love Hollywood are the least likely to say out loud: People aren't going to the movies like they used to."

► The Ankler's Richard Rushfield captures the big picture: "There's just this general feeling — beyond this month's receipts — that the bottom has fallen out on this thing, and bringing it all back might be harder than we've been telling ourselves."

OFF STAGE

Taylor Swift's "The Tortured Poets Department" and Billie Eilish's "Hit Me Hard and Soft" both sold over 300,000 equivalent album units within in a single week in the U.S., marking the first time two albums have done so since 2016. Swift, however, edged out Eilish — all the more notable amid speculation the two are feuding. (Billboard)
Haven't yet seen "Fallen Idols"? Michaela Zee has the spark notes on the film's biggest allegations against Nick Carter. (Variety)
Carter's attorney blasted the docuseries, calling it "outrageous." (CNN)
Shane Gillis' new Netflix comedy series "Tires" might be getting panned by critics, but audiences are tuning in. (Deadline)
Paramount has submitted "A Gentleman in Moscow" for 20 Primetime Emmys. (Variety)
The third entry in Rian Johnson's "Knives Out" franchise expanded its cast with Andrew Scott. (Variety)
"The White Lotus" star Theo James is set to star in a heist thriller alongside Aaron Taylor-Johnson. (Variety)
CAA said its annual Moebius Film Festival will take place May 30-31. (The Wrap)

Thank you for reading! This newsletter was edited by Jon Passantino and produced with the assistance of Liam Reilly. Have feedback? Send us an email. You can follow us on Instagram, Threads, and LinkedIn. We will see you back in your inbox tomorrow.

You are receiving this newsletter because you signed up for Reliable Sources.
To stop receiving this newsletter, unsubscribe or sign up to manage your CNN account

Learn more about the CNN app | Get CNN web alerts | Sign up for a free CNN account